LONG-TERM COST ADVANTAGES

Insurance Savings

Insurance savings for cold-formed steel

The non-combustibility of steel structures gives them better loss ratings and saves money on both types of Insurance.

Insurance premiums represent 5% of costs during construction (Builder’s Risk Insurance)

& up to 10% of the cost of long-term operation of the structure (Property Insurance)

Cost Comparison Insurance Savings

Project Description:

Hotel/Lodge
4 story, 400 unit
Location
Mason, OH
Construction Value
$120,000,000
Construction Time
24 months

Builders Risk Insurance

Cost Basis Comparison:

Wood

80%

Wood: $0.60 to $0.80/$100 Construction Value

Steel

18%

Cold-Formed Steel: $0.12 to $0.18/$100 Construction Value

Insurance Premium Comparison:

Wood

70%

Wood: $0.70 (average cost) x $120,000,000 x 2 years =

$1,680,000

Steel

15%

Cold-Formed Steel: $0.15 (average cost) x $120,000,000 x 2 years =

$360,000

SAVINGS: $1,320,000

Property Insurance

Cost Basis Comparison:

Wood

14%

Wood: $0.12 to $0.14/$100 Final Value

Steel

8%

Cold-Formed Steel: $0.07 to $0.08/$100 Final Value

Insurance Premium Comparison:

Wood

13%

Wood: $0.13 (average cost) x $120,000,000 x 1 year =

$156,000

Steel

7.5%

Cold-Formed Steel: $0.075 (average cost) x $120,000,000 x 1 year =

$90,000

SAVINGS: $66,000/year

Over 10 years, the total cost savings would be $660,000!